What is the company: - Trustpilot

 What is the company: 

A corporation is an organization that conducts commercial activities for commercial purposes through the production and sale of goods or services.

A company, also known as business activity, deals with the sale, production, and purchase of goods or services.

One of the main goals of the company is economic benefit, to make a profit as a result of providing services or selling a product.

Firms also strive to achieve certain results, which are goals which must be achieved according to the company's main mission. To achieve results and generate profit, the company must follow a predetermined strategic plan.

The person responsible for managing the company is the businessman. Manages company management and market operations with the help of employees. To accomplish this task, the project owner must be familiar with administrative and managerial processes such as analyzing results and managing resources.

In these tasks, entrepreneurs usually enlist the help of an administrator, who is a professional who specializes in planning, organizing and evaluating business results.

3 main elements of the company

Firms consist of three components or resources:

Materials: Includes raw materials, equipment, technologies and all logistical services needed for the company's business;

People: Entrepreneurs, administrators, and employees who occupy positions and positions in the company. Customers, consumers and suppliers are also part of this category;

Finance: money earmarked for investments, purchasing of raw materials, bonuses for employees and paying taxes.

What kind of companies are there?

There are five types of companies: Sole Proprietorship, Sole Proprietorship, Sole Proprietorship Limited Liability Company, Simple Partnership, and Organizational Partnership.

1. Small Single Entrepreneur (MEI)

The young entrepreneur is the only partner of the company and can hire one employee. Additionally, it cannot have any subsidiaries.

This type of company is created for the sole owner who provides services. In this ranking, these freelancers turn out to be young entrepreneurs.

The annual sales limit for individual small business owners must not exceed R $ 81,000.

2. Individual Entrepreneur (IP)

A single entrepreneur works alone, without being part of society. He carries out the company's activities on his own behalf with his investments only. Firms without partners that sell goods or services are examples of sole proprietors.

An important characteristic of an individual entrepreneur is the unlimited liability of the company. This means that the entrepreneur will be able to use company or personal assets to fulfill obligations (for example, business debts and unpaid payments).

To be a sole proprietor, the annual sales volume cannot exceed 360,000 OMR.

3. Sole Proprietorship Limited Liability Company (EIRELI)

EIRELI is also a company created by one partner. In this type of business, the partner is not liable for the debts of the company with his personal assets. Any debts or payments from the company's capital must be repaid.

To register this company, the entrepreneur must have a minimum capital equivalent to one hundred minimum wages, and the annual business return has no specific limits.

It can be used to market and produce goods and services, as well as to provide self-employed professionals.

Find out more about the meaning of EIRELI.

4. Simple membership

A simple partnership must be formed by at least two partners who have unlimited ownership liability. Thus, the partners may have to fulfill their financial obligations not only with the company's capital, but also with personal assets.

This type of company is used to provide services in different specialties (called intellectuals), for example: doctors, lawyers, engineers, and artists in general.

The annual income of a simple company cannot exceed 4.8 million riyals.

5. The business community

Business companies are created by at least two partners who have financial obligations only with the company's capital in proportion to the value of their shares.

Partners will be required to repay debts on personal capital only in special cases such as wage arrears or tax debts.

Business communities can be used in many areas of activity, such as providing services and selling goods, but they cannot market intellectual and independent activities.

You must operate in the form of a Limited Liability Company (Ltda.) Or Limited Liability Company (S / A). The limited partnership has a simpler process and the company's capital is divided among the partners in the form of shares.

The company is a little more complex, and the company's capital is divided into shares that can be bought even by people outside the company (shareholders).

See for more information on Limited Liability Companies and Limited Liability Companies.

What is the difference between public and private companies?

Firms can also be classified as public, private, or mixed. This classification takes into account the company's equity capital.

Public company: It is the companies in which the government invests and provides services related to government activities. Hence, it is also managed by the state. Examples: Correios and Caixa Econômica Federal;

Private company: are privately owned companies run by their owners, such as companies that generally sell goods and services.

Mixed company: are companies with mixed capital (capital invested by the state and private capital). Petrobras and Banco do Brasil are joint stock companies.

What are the business sectors?

The classification of business sectors corresponds to the scope of the company:

The primary sector: It consists of companies that exploit natural resources or sell raw materials to companies in other sectors. Fishing and agriculture are examples of activities in this sector;

Secondary sector: This sector includes companies that manufacture manufactured goods and sell them to consumers, for example in the clothing, food, and technology industries.

The third sector: It consists of companies that engage in trade, selling products or providing services. Trade in general and individual entrepreneurs are examples of activities in the service sector.

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